The proposal is considered to identify insensitive areas such as specific production segments, renewable energy and consumer goods where investment proposals of Chinese companies could be cleaned through faster and simplified approval process, said the first of the above two people.
“There are interviews on the diplomatic level to find a feasible solution, maintain sensitive sectors such as defense and telecommunications, and critical digital infrastructure to ensure that national security is not endangered even if economic benefits are realized,” the other person said. They both talked about the state of anonymity.
“Since there is no plan to examine print notes 3, investments from China will be considered through government approval and not automatic,” said the person. According to press notes 3, investments from countries that share the boundary of land with India must first be approved by the government.
India has limited Chinese investment after a deadly clash between the soldiers of both nations in the Ladakh Valley Galwan Valley in 2020. Simplified, trade continued to grow when India relies on his neighbor for importing pharmaceutical raw materials on the electronic part. India from China increased from $ 94.57 billion in FY22 to FY22 in FY25. In contrast, exports to China fell from $ 21.26 billion in FY22 to $ 14.25 billion in FY25.
Incoming consignments from China during April – July 2025 amounted to $ 40.66 billion, which is 13.1% compared to the previous year. Exports to China over the period jumped by 20% to $ 5.76 billion.
China also put pressure on India by using its dominance in critical sectors. Its almost monopoly on the magnets of rare soils gives him a significant leverage against India, which relies strongly on imports. China has also strategically controlled the range of machines for tunnel forced (TBM) used in large infrastructure projects, causing delays and increasing costs. This is enhanced by the withdrawal of Chinese technology professionals from Indian manufacturing units, potentially disturbing operations.
When Trump announced the tariffs to its business partners, the new Delhi began to alleviate some curbs to improve tight ties. India continued to publish tourist visas to Chinese nationals after a five -year gap. In a parallel move, the new Delhi is preparing to restart direct flights to Beijing from next month and restore the air connectivity that remained suspended from Pandemie Covid-19. Modi also visits China for the upcoming summit organization for cooperation in Shanghai (SCO).
Questions sent to the Ministry of Trade and external matters remained unanswered until the press.
You need to strengthen FDI
Meanwhile, Trump imposed the highest 50% of the tariffs in India, including 25% of the Purchase Purchase Purchase. The first set of 25% of the obligation came into force on August 7, while another 25% will come into force on August 27, which India gives time to negotiation.
However, the sixth round of interviews on the bilateral business agreement of India-USA (BTA), which was scheduled for August 25, was canceled and no new data has been announced, leaving the negotiations in Limbo.
“With the aim of India, by 2047, the status of a developed nation by 2047, building a stronger production ecosystem and attracting a larger investment (from China) without jeopardizing the domestic sector will be a key driving force of this ambition,” Amit Singh, Associate Professor, Special Center for National Security at JNU.
India attracted direct foreign investment (FDI) worth $ 81.04 billion in FY25, which is 14% compared to the previous year, data from the Ministry of Commerce. The service sector proved to be the best recipient of the FDI capital, which represents 19% of the total, with an investment rising almost 41% to $ 9.35 billion in FY25.
According to data shared by Foreign Minister for Finance Pankaj Chaudhary in Lok Sabha, however, in Lok Sabha 10 March reached the inflow of direct foreign investment in India. The FDI slipped to $ 71.35 billion in FY23 and $ 71.27 billion in FY24, in the middle of concerns about potential global recession, economic crisis caused geopolitical conflicts and growing protectionist measures worldwide.
The attraction of Chinese investment is “important because this could help add investments and solve the recent decline in flows of direct foreign investment,” said Biswajit Dhar, a business policy expert in Delhi, Social Development Council. “If India is able to attract more investment focused on export-what is often referred to as investment trade-by this could also have a positive impact on the growing business deficit of the country.”
The government focuses on attracting $ 100 billion on FDI in FY26.
Modi’s first visit since 2019
Meanwhile, it is scheduled for Modi to travel to China to Tianjin to participate in the SCO summit from August 31 to September. This will mean his first visit to China since the clash of the Galwan valley in 2020. He last visited this country in 2019.
In front of the summit, Prime Minister Japan will visit August 30 to participate in the annual summit in India and Japon with Japanese Prime Minister Shiger Ishiba, after which media reports will head to China.
When moving to Modi’s visit, the Chinese Foreign Minister Wang Yi will be in the new Delhi from 18-19. August for the 24th round of interviews of special representatives on the border issue between India China with the National Security Advisor Ajit Doval, according to the statement of the Ministry of external affairs.
(Tagstotranslate) Chinese investment
